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ST. JOHN'S, NL, July 31, 2023 /CNW/ - Aurion Resources Ltd. (TSXV: AU) (OTCQX: AIRRF) ("Aurion" or the "Company") announces that it has entered into an agreement with B2Gold Corp. ("B2Gold") whereby B2Gold has agreed to contribute €3,500,000 for the repurchase of the 3% net smelter return royalty covering the Kutuvuoma project (the "Kutuvuoma Royalty"), which is part of the joint venture between B2Gold (holding a 70% interest) and Aurion (holding a 30% interest).
As previously announced in news releases dated May 31, 2023 and July 10, 2023, Aurion entered into an option agreement dated May 29, 2023, with Dragon Mining Ltd. ("Dragon"), which provided Aurion with the option ("Option") to acquire and eliminate all encumbrances on the Kutuvuoma and Silasselk projects, including the Kutuvuoma Royalty and a 3% net smelter return royalty covering the Silasselk project, for total consideration of €5,000,000 and 37,500 common shares of Aurion ("Shares").
B2Gold has agreed to contribute €3,500,000 in cash to fund the exercise of the Option. As a result, Aurion's contribution to the Option exercise will be €1,500,000 in cash, Shares or a combination of both (provided that any issuance of Shares will not exceed the number of Shares that would result in Dragon owning, or having control or direction over 9.9% of the then-issued Shares), at the Company's discretion on or any time before September 30, 2023.
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